The prospects for an expansion of biogas systems in Sweden - Incentives, barriers and potentials

Biogas is a renewable, high-quality fuel, currently produced at more than 200 locations in Sweden. The present production is some 5 PJ/year but the potential is approximately 10 times higher. Biogas can be produced from a wide range of raw materials, from organic waste to dedicated energy crops, and can be utilised for various energy services such as heat, combined heat and power or as a vehicle fuel. Biogas systems are therefore affected by a number of different incentives and barriers, including energy-, waste treatment- and agricultural policies. In this paper, different policies and policy instruments, as well as other factors, which influence a potential expansion of Swedish biogas systems, are identified and evaluated. Existing incentives and barriers can be divided into those affecting the production of biogas, and those affecting the utilisation of the biogas. Only a few types of biogas systems are competitive in Sweden today, while the majority needs increased incentives of different kinds to reach profitability. Such incentives are often motivated from an energy and environmental point of view. Due to the complexity of the biogas systems and the many actors involved, all with different interests, the process of implementing adequate policy instruments will require concerted efforts. (c) 2006 Elsevier Ltd. All rights reserved.